Greek debt 'on knife edge'

IMF says that huge Greek debt 'on knife edge'

Greece's enormous debt busdon are sustainable but on a "knife's edge," according to the International Monetary Fund.A 110bn-euro (£96bn) rescue package for Greece is being implemented but investors still fear a default.Given the situation, Greece must stick to its reform programme.
His comments came as UK Deputy Prime Minister Nick Clegg said he was "incredibly worried" about the Greek debt crisis.
Greece under Prime Minister George has passed several rounds of austerity measures, including tax increases, pay cuts, privatisations and public sector redundancies, to get aid from the IMF and the European Union.
Poul Thomsen, the IMF's mission chief to Athens, said that Greece must now implement these
reforms."Policies must be applied as planned, or the sustainability of the debt will be placed in doubt," he told Greek newspaper Ethnos.
"The Greek debt is sustainable but it is, as we say, on a knife's edge."
US Secretary of State Hillary Clinton said on a visit to Athens that "the US strongly support the Papandreou govt determination to make the necessary reforms to put Greece on a sound financial footing".
Greece has more than 350bn euros of debt, and the IMF warned last week than it needs an additional 100bn euros in aid on top of last year's bail-out to avoid a default.